MANAGEMENT

BUISENESS MANAGEMENT

RISK MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
True or False:Mutual Funds have very low risk
A
True
B
False
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. But there are circumstances in which a mutual fund is not a good choice for a market participant, especially when it comes to fees.

Detailed explanation-2: -Mutual Fund Schemes are not guaranteed or assured return products. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

Detailed explanation-3: -Are Mutual Funds Safe? Like all other securities, mutual funds are investments that are subject to losses. However, the goal of a mutual fund is to reduce investment risk, so mutual funds can often be less risky than other types of investments due to its diversification.

Detailed explanation-4: -All investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. Since they hold many company stocks within one investment, they offer more diversification than owning one or two individual stocks.

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